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Staycations 'will exacerbate north-south divide'

Staycations 'will exacerbate north-south divide'
22 May 2014

A new report has suggested that the increase in staycations is set to have serious social implications in the years ahead.

The survey reveals that the majority of spending by British people will mean that the wealth gap between the north and south of the country will increase further.

For instance, it has been suggested that a mere three per cent of this spending will occur in the north-east of England, which is already an area blighted by social deprivation.

Overall spending will spike by 25 per cent to more than £108 billion by 2017. However, some 16.2 per cent of this total spending will be in London, while 12.9 per cent will take place in the south east and 12.2 per cent in south west England.

By contrast, a mere 5.8 per cent of total spending will occur in the west Midlands.

Mike Saul, head of hospitality and leisure at Barclays, said: "The economy is improving and confidence is certainly growing, and while this will lead to a gradual rise in the number of consumers looking to holiday abroad again, it is unlikely to precipitate a return to the holidaying habits we were seeing prior to the downturn."

He added: "With domestic tourism set to be big business for the UK's hospitality and retail sectors, those with a clearly targeted strategy are set to benefit."

What's more, the report noted that the hospitality and leisure sectors will benefit most from the move towards more staycationing. More specifically, it was found that spending in pubs and restaurants will rise by 26 per cent.

Hotel and B&B spending will also increase by 26 per cent, according to the report conducted by Barclays.

The headline of the report, though, is undoubtedly the impact tourism is set to have on the north-south divide issue.ADNFCR-408-ID-801722606-ADNFCR

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